Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2018 Earnings Presentation
28 slides from Auckland International Airport's earnings presentation, 2018
Slide 1: Interim Results 2018
Interim Results 2018 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Highlights
Highlights FY18 interim results Adrian Littlewood, chief executive
Slide 3: Results at a glance
Results at a glance 2018 Interim Results Highlights Revenue Passenger movements 6.9% $332.4m 6.4% 10.0m performance Financial Operating EBITDAFI Aircraft movements Our continuing journey 6.0% $250.1m 4.2% 88,113 Underlying profit Interim dividend per share 7.8% $133.1m 7.5% 10.75 cents 3
Slide 4: Highlights: milestones and key results
Highlights 2018 Interim Results Milestones Key results Highlights 1 new airline and 4 new routes International passengers up 5.8%1, 1m 10% performance domestic passengers up 7.7% Financial Doubled international departures International passengers Growth in retail border processing and security
Slide 5: Financial performance
performance Financial FY18 interim results Philip Neutze, chief financial officer
Slide 6: Solid growth in underlying profit
Solid growth in underlying profit 2018 Interim Results Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Revenue 332.4 310.9 6.9% performance Expenses 82.3 75.0 9.7% Financial Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates 250.
Slide 7: Revenue growth across the business
Revenue growth across the business 2018 Interim Results Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Airfield income 59.9 59.2 1.2% Passenger services charge 89.1 85.9 3.7% performance Financial Retail income 88.9 80.7 10.2% Car park income 31.4 28.9 8.7% Our continuing Investm
Slide 8: Continued passenger growth
Continued passenger growth 2018 Interim Results Highlights For the 6 months to 31 December* 2017 2016 Change International arrivals 2,592,506 2,462,690 5.3% performance International departures 2,477,695 2,328,885 6.4% Financial International passengers excluding transits 5,070,201 4,791,575 5.8% Tr
Slide 9: Steady growth in movements and MCTOW
Steady growth in movements and MCTOW 2018 Interim Results Highlights For the 6 months to 31 December* 2017 2016 Change Aircraft movements International aircraft movements 27,984 27,476 1.8% performance Financial Domestic aircraft movements 60,129 57,117 5.3% Total aircraft movements 88,113 84,593 4.
Slide 10: Expenses driven by business growth
Expenses driven by business growth 2018 Interim Results Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Staff 27.3 24.9 9.6% Asset management, maintenance and airport operations 31.7 26.1 21.5% performance Financial Rates and insurance 6.7 6.1 9.8% Marketing and promotions 5.2 7.9
Slide 11: Associates' performance
Associates’ performance 2018 Interim Results For the 6 months to 31 December (NZ$m) 2017 2016 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 23.2 19.6 18.4% performance Financial EBITDAFI 17.0 13.1 29.8% Domestic Passengers 751,056 660,231 13.8% International Passengers 333,43
Slide 12: Our continuing journey
Our continuing journey FY18 interim results Adrian Littlewood, chief executive
Slide 13: Connecting New Zealand to the world
Connecting New Zealand to the world 2018 Interim Results Routes added since 2015 have connected Auckland with new cities of nearly Highlights 140 million people 30 international airlines performance 46 international Financial destinations domestic 19 destinations London Our continuing Vancouver jour
Slide 14: Strategic priority: Growing Travel Markets
Strategic priority: Growing Travel Markets 2018 Interim Results Increased capacity and strengthening load factors Highlights • Domestic airline capacity grew 5% in the six months to 31 December with increased frequency to Queenstown, Christchurch and regional destinations. Load factors also improved
Slide 15: Strategic priority: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2018 Interim Results Delivered stage two of international departures upgrade Highlights • Opened full new Duty Free offering and first tranche of Destination stores on schedule in December. Duty Free departure sales were up ~30% in the month perfo
Slide 16: International departures upgrade phasing
International departures upgrade phasing 2018 Interim Results NEW MEZZANINE Highlights LEVEL performance Financial Our continuing journey Proposed phasing: Duty Free and Western Delivered precinct Q4 FY18 – Specialty & Luxury High Q1 FY19 Street Additional retail storage Q1 FY19 Remaining Destinatio
Slide 17: Parking revenue increase following capacity additions
Strategic priority: Strengthen our consumer business 2018 Interim Results Parking revenue increase following capacity additions Highlights • Parking revenue up 8.7% with ARPS flat as parking income growth matched capacity increases • ~1,000 new spaces built at Park & Ride and ~600 were performance F
Slide 18: Strategic priority: Be fast, efficient and effective
Strategic priority: Be fast, efficient and effective 2018 Interim Results Investing in our customer experience 60 Mobile international self- Highlights service check-in kiosks • New international departures processing and security screening area, including space for passengers to repack and relax 15
Slide 19: Strategic priority: Invest for future growth
Strategic priority: Invest for future growth 2018 Interim Results Completed 1H FY18 2H FY18 FY19 and beyond Highlights Phase 3 • New emigration hall • Phased opening of • Remaining Speciality Extended outbound • Recompose space first new Speciality & & Luxury High Street Phase 3 processing & dwell L
Slide 20: Core infrastructure project delivery statistics
Strategic priority: Invest for future growth 2018 Interim Results Core infrastructure project delivery statistics in the six months to 31 December 2017 Highlights 102% 112 % 100% performance Financial Our continuing journey Investment spend against Number of projects Number of projects plan complete
Slide 21: 16.3% growth in property revenue
Strategic priority: Invest for future growth 2018 Interim Results 16.3% growth in property revenue Highlights Investment property • Completed developments: $90 million rent roll – 6,000m2 Ministry for Primary Industries building 250 hectares Landdevelopment performance available for Financial – 7,00
Slide 22: Investing in safety
Strategic priority: Invest for future growth 2018 Interim Results Investing in safety Highlights • Pro-active safety observations increased 84% reflecting our continuing investment in safety • Passenger injury rate down 26% following the performance Financial introduction of new safety measures incl
Slide 23: Regulatory update
Regulatory update 2018 Interim Results • Auckland Airport’s FY18-22 aeronautical pricing decision Highlights was announced in June 2017, following a comprehensive consultation process with our airline partners over 12 months performance • The Commerce Commission is reviewing the information Financia
Slide 24: Outlook
Outlook 2018 Interim Results NQA investment Highlights • We have agreed to sell our 24.6% investment in NQA to existing investors for A$370m • The sale is subject only to securing the necessary performance Financial regulatory and counter-party approvals and will be completed in accordance with the
Slide 25: Questions
Questions
Slide 26: Appendix
Appendix
Slide 27: Underlying profit reconciliation
Underlying profit reconciliation 2018 Interim Results 2017 2016 Highlights Reported Adjustments Underlying Reported Adjustments Underlying For the 6 months to 31 December profit $m profit profit $m profit $m $m $m $m EBITDAFI 250.1 - 250.1 235.9 - 235.9 performance Financial Share of profits of asso
Slide 28: Important notice and glossary
Important notice and glossary 2018 Interim Results Disclaimer This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription, purchase, or recomm
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